Approximately 11,000 University of Iowa Hospitals & Clinics employees will receive a combined $15 million from the Iowa Board of Regents to settle a class action lawsuit after workers alleged managers did not pay overtime, bonuses or accrued leave on time. Six employes who led the lawsuit will receive $10,000, while the reminaing 11,000 workers […]
Approximately 11,000 University of Iowa Hospitals & Clinics employees will receive a combined $15 million from the Iowa Board of Regents to settle a class action lawsuit after workers alleged managers did not pay overtime, bonuses or accrued leave on time.
Six employes who led the lawsuit will receive $10,000, while the reminaing 11,000 workers will receieve a share of the remaining $11.6 million, depending upon the number of late payments they received from the hospital. The news was first reported by the
Des Moines Register.
The settlement also says about 3,600 workers are eligible for an extra $100 because they received overtime payments under a federal law UIHC violated.
Another 5,600 employees will earn $50 because they did not receive accrued leave quickly enough after termination. Employees who left after Oct. 7, 2017 could be eligible for the $50 payment.
The six employees' lawyers will receive $3.4 million.
A UIHC spokesperson told the Register the healthcare system is "pleased to reach a final resolution," on the case. Lawyers for the employees said they could have potentially won a $64 million settlement, but they were worried a higher court could have reduced the $15 million if they sided with UIHC.
In March, a federal judge ruled the University of Iowa owed damages in paying overtime and other compensation late. The case had been working its way through the court system since 2017. Employees argued that by UIHC paying overtime benefits more than a month late, they violated the
Fair Labor Standards Act, among other claims.
The court also found UIHC paid out benefits later than required "intentionally" and beyond the legally permissable time limit, according to the filing. Iowa Code dictates they are then liable for liquidated damges.
While UIHC is settling, the filing shows that the Board of Regents denies wrongdoing.
"The Board of Regents is entering into this settlement agreement because the settlment will eliminate the burden, risk and expense of further litigation," they said in the Oct. 14. filing.
In June, the University of Iowa filed a lawsuit against Cupples Construction and Knutson Construction regarding
defective windows installed in the UI Stead Family Children's Hospital
